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RUBS Billing: 4 reasons why apartment owners love it

RUBS billing

The benefits of conservation, increased profitability, and increased property value should be enough reason for any owner to consider utility billing. Nevertheless, Ratio Utility Billing Solutions (RUBS) can also benefit owners by giving them more consistent utility bills, by reducing fluctuating utility costs, and by reducing the workload for their property management team.

Let’s dive into the 4 benefits you can find by using RUBS billing!

1. Reduces fluctuating utility expenses

By implementing the RUBS program at a property, tenants are able to recognize that by conserving, reporting maintenance issues quickly, and minimizing waste, they can decrease their utility expenses. Therefore, tenant conservation efforts, and usage awareness, directly impact the utility bill for the entire complex. This allows the property owner to see more standardized utility bills month to month, the majority of which would be allocated to the tenants.

2. Eliminates workload for property managers

The use of a third-party billing company to recover the utility costs at your property eliminates the workload for your property management team. The manager does not have to analyze the utility bills, enter the amounts into the resident ledgers, or worry about answering tenant billing questions. Managers can focus on meeting the needs of the property and its residents, while the third-party company handles the utility billing.

3. Increases property value

An owner is most likely to include utilities in the rent when the apartment complex is master-metered for water. These types of properties benefit most from utilizing RUBS. Tenants are able to recognize that by conserving, reporting maintenance issues quickly, and minimizing waste, they can decrease their utility expenses. In, addition RUBS makes it so owners are not financially responsible for the wasteful behaviors of their tenants. Owners benefit because RUBS doesn’t typically require capital outlay.

Separating out the utilities from the rent helps owners by increasing net operating income (NOI) and property values. This helps insulate the owners from paying for excessive resident usage, or losing money when utility prices spike. Additional analysis of the utility bills also helps detect maintenance issues, leaks, and other problems saving both owner and tenant money. Not to mention, lower rent is clearly more attractive to renters. By separating utility charges, the property is able to maintain their margin and still stay competitive in the rent market.

If the benefits of conservation and increased profitability and property value have not given enough reason for any owner to consider utility billing, stay tuned for next month’s article where we will discuss the final benefits of utilizing RUBS at your property.

4. Reduces fluctuating utility expenses

In today’s economy, everything, including the most basic needs, is expensive. Gas prices are back on the rise, food costs are skyrocketing, and water shortages, combined with inadequate infrastructure, are driving up utility costs across the country. As the cost of living rises, how can property owners find ways to eliminate expenses and remain profitable?

In today’s current environment and social climate, as more people are becoming environmentally conscientious, conservation is a driving force in decision-making processes. As the planet’s population expands and water sources become more limited, not only is the cost of water rising, but many city and state governments are passing laws restricting the amount of water a complex can use without incurring fines.

By incorporating RUBS at your property, tenants become more aware of the effect that their energy usage has on the bill. When utilities are a fixed amount each month, or included in rent, tenants lack incentive to cut back on their utility usage, whether it be gas or water/sewer use. When the utilities are billed separate from the rent, and vary from month to month, tenants are more likely to make efforts to conserve, whether it be by turning off lights, not letting the water run while doing dishes, or shortening shower times. Studies have proven that allocating utility charges reduces utility expenses by up to 30%.

Along with the use of RUBS allocations, comes the monitoring of usage trends, which also promote conservation. A leak in a toilet, or a faucet left running, can waste thousands of gallons, causing unnecessary costs for both the tenants and the property.

Still have questions?

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